Orion Languages, Incorporated (OLI) offers conversational Instruction in several languages. Customers can choose from threeapproaches: Group, Individual, or Intense. Group customers meet as a part of a class at scheduled times. Individual customers receiveone-on-one Instruction over the same time frame as a group class, but at times most convenient for them, Intense customers receivefocused, Individual Instruction over two weeks; this approach is often chosen by executives who are relocating to offices located incountries where a new (to the executive) language is spoken. The courses have the following characteristics:Group$ 334$ 84782Individual$ 2,534$ 1,534234Price charged per customerVariable cost per customerExpected customers per yearThe total fixed costs per year for the company are $609,000.Intense$ 5,085$ 3,335234Required:a. What is the anticipated level of profits for the expected sales volumes?b. Assuming that the product mix is the same at the break-even point, compute the break-even point in number of customers.c. As a result of recently changed economic conditions, the marketing director at OLI expects many fewer customers for the Intenseoffering and also a shift from Group classes to Individual instruction. The current thinking at OLI is that there will be the same totalnumber of customers, but the mix will change to about 5 Group, 4 Individual, and 1 Intense customer for every 10 customers thatsign up for a course. Assuming that this revised product mix is the same at the break-even point, compute the break-even point innumber of customers under these new expectations.

Group Individual IntenseTotalPrice charged per Customer$334$ 2,534$5,085Less:Variable cost per…

Answered: Required: a. What is the anticipated…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Flamengo Co is a sporting goods manufacturing. Its basketball division had an ROI of 15% in 2020. Which of the following is not an advantage of ROI? O It discourages excessive investment in operating assets. O It encourages cost efficiency. O It encourages managers of departments with high ROIS to invest in average ROI projects. OIt encourages managers to pay careful attention to the relationships among sales, expenses, and investment.
Subject :- Accounting
Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous shipments are expected to affect the company’s ability to satisfy the customer. Further, the strategy map for the balanced scorecard shows that the hours from ordered to delivered affects the percentage of customers who shop again, and the number of erroneous shipments affects the online customer satisfaction rating. The following information is also available: The company’s target hours from ordered to delivered is 20. Every hour over the ordered-to-delivered target results in a 0.5% decrease in the percentage of customers who shop again. The company’s target number of erroneous shipments per year is no more than 70. Every error over the erroneous shipments target results in a 0.05 point decrease in the online customer satisfaction rating and an added future financial loss of $500. The company estimates that for every 1% decrease in the percentage of…
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Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous shipments are expected to affect the company’s ability to satisfy the customer. Further, the strategy map for the balanced scorecard shows that the hours from ordered to delivered affects the percentage of customers who shop again, and the number of erroneous shipments affects the online customer satisfaction rating. The following information is also available: The company’s target hours from ordered to delivered is 30. Every hour over the ordered-to-delivered target results in a 0.5% decrease in the percentage of customers who shop again. The company’s target number of erroneous shipments per year is no more than 55. Every error over the erroneous shipments target results in a 0.05 point decrease in the online customer satisfaction rating and an added future financial loss of $600. The company estimates that for every 1% decrease in the percentage of…
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